You filed for a GST refund. Then you waited. And waited. And waited some more. Now it’s been months, and you’re blaming the department.
Here’s the truth: Most GST refund delays are not due to the government — they’re due to your filings.
We’ve seen it firsthand. Again and again.
GST Refund Stuck for Months? Look Inward First.
Founders often assume that delays are system-related.
But the root cause, in most cases, lies in compliance gaps, declaration mismatches, and process blind spots.
Whether you’re applying for refund due to inverted duty structure or zero-rated exports, one bad declaration can derail the whole claim.
Let’s break it down.
Mistakes That Quietly Kill Your GST Refund
Here are 3 of the most common reasons refund claims sit in limbo for months:
Inverted Duty Structure Mismatch
You’re eligible for a refund because input tax is higher than output tax.
But if:
- You’ve used the wrong HSN codes
- Your outward supplies don’t reflect the right rate
- Or you’ve claimed input on ineligible items…
The refund gets blocked — or worse, rejected without explanation.
Your Suppliers Haven’t Filed GSTR-1
This one stings.
You’ve paid vendors. You’ve claimed ITC.
But if your supplier doesn’t file GSTR-1 or mismatches their invoice details — your ITC is invalidated, and refund can’t proceed.
Why? Because the system cross-checks your claim against the supplier’s return.
Wrong Declaration in RFD-01
This is the form where you claim the refund.
Minor errors here = months of follow-up and no progress.
Examples:
- Incorrect tax period mentioned
- Wrong category selected (inverted/excess balance/export)
- Supporting docs missing or mislabelled
- Bank details don’t match the portal
Every small mistake here triggers manual scrutiny. Which means — delay.
Real Case: ₹18L Refund Stuck for 14 Months — Unlocked in 30 Days
A D2C client approached us with a refund stuck since last financial year.
Total amount: ₹18,00,000
Number of follow-ups done: 11
Result: Zero progress
We took over, and here’s what we found:
- 4 vendors hadn’t filed GSTR-1
- 2 invoices were missing in GSTR-2A
- RFD-01 had a period mismatch
- Supporting docs were incorrectly tagged
We cleaned it all up, refiled using the correct declaration structure and matched every entry with portal data.
In under 30 days, the refund was credited.
Want to Avoid This? Here’s a Quick Checklist:
- Have all suppliers filed GSTR-1?
- Do your purchase invoices match GSTR-2A?
- Are your refund categories accurate in RFD-01?
- Have you included the correct tax period?
- Are your ITC claims eligible under Rule 89?
This isn’t just paperwork — it’s money stuck in the system.
Final Word: Want the Full Template We Used?
Don’t let your refund die in red tape.
We’ve built a tried-and-tested RFD-01 prep template + checklist that fast-tracks refunds and cuts down rejection risk.
Get in touch with Pitchers Global today!